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Argue persuasively and critically why paying a higher wage rate based on Efficiency Wage Theory can be effective in raising up productivity, workplace cohesiveness, employee responsiblililty and loyalty and reduces shirking.
Matthew has a contract to sell a piece of real estate to Betty for $35,000. Matthew breaches the contract and decides to keep the property even though the market price is only $31,000. Betty can recover:
Let the consumer begin in utility maximizing equilibrium at point A on indifference curve I. Next the price of good X changes so that the consumer moves to a new utility-maximizing equilibrium at point B on indifference curve II. Write the linear de..
Suppose that in an hour Chip can gather 8 pounds of fruit or 4 pounds of nuts. In an hour, Monk can gather 9 pounds of fruit or 3 pounds of nuts. Who should specialize in gathering nuts? Monk or Chip? both? or neither?
California’s Proposition 13, enacted in 1978, limits the property tax on real estate to one percent of the market value when purchased, and a maximum annual increase in the tax amount of two percent. According to the Georgists, Prop 13 did not constr..
What is the mission and legal mandate of the Federal Reserve System? What policy tools are available to the FED to achieve their mission?
The City Council in Bigtown is debating whether to give monopoly rights to Bigtown Cable TV, Inc. Bigtown Cable is arguing that monopoly rights will allow it to employ more people at higher wages. As the staff economist for the City Council, analyze ..
Suppose a private closed economy has an MPC of .8 and a current equilibrium GDP of $7400 billion. What is the multiplier in this economy? Now suppose the economy opens up trade with the rest of the world and experiences net exports of $20 billion. Wh..
When confronted with a natural monopoly that restricts output and charges monopoly prices, the two methods that governments have for promoting better outcomes are:
Current annualized yields on 1 year US treasury securities are only .28%....while current annualized yields on 2year US treasury securities are .69% (note you may assume that both 1 and 2year securities in this example are “0” coupon securities with ..
Denson Company had been employing 6 workers and 8 tons of raw materials, using 2,000 square feet of plant space. The firm increased its work force to 12 workers utilizing 16 tons of raw materials in a plant space increased to 4,000 square feet. Total..
Should certain sectors of the economy be regulated? Which ones and why? Should there be greater or less regulation during certain parts of the business cycle or certain economic conditions? Which ones and why?
Sew ‘N More just paid an annual dividend of $1.42 a share. The firm plans to pay annual dividends of $1.45, $1.50, and $1.53 over the next 3 years, respectively. After that time, the dividends will be held constant at $1.60 per share. What is this st..
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